An appraiser using data from a commercial database should:
Correct Answer
D) Verify a sample of records against original sources
Why this is correct: The governing concept is that an appraiser must ensure the reliability of data used in an appraisal. Commercial databases aggregate information from many sources of varying quality. To assess the database's reliability for the specific assignment, the appraiser must perform due diligence by verifying a sample of records against original sources, such as public records or verified documents. This spot-checking, as noted in the original explanation, determines if the source can carry the weight placed on it. Why the other choices are wrong: Reporting the database as the sole data source is wrong because an appraiser must not misrepresent the extent of data verification. Accepting the database as fully authoritative is wrong because it abdicates the appraiser's responsibility to ensure data credibility. Using only records flagged as verified by the vendor is wrong because the vendor's verification process may be insufficient or unknown; the appraiser retains the ultimate responsibility for data reliability. Exam tip: Remember the core appraisal principle: you are responsible for the data you use. Never blindly trust a secondary source; always perform some level of verification.
Why This Is the Correct Answer
Why this is correct: The governing concept is that an appraiser must ensure the reliability of data used in an appraisal. Commercial databases aggregate information from many sources of varying quality. To assess the database's reliability for the specific assignment, the appraiser must perform due diligence by verifying a sample of records against original sources, such as public records or verified documents. This spot-checking, as noted in the original explanation, determines if the source can carry the weight placed on it. Why the other choices are wrong: Reporting the database as the sole data source is wrong because an appraiser must not misrepresent the extent of data verification. Accepting the database as fully authoritative is wrong because it abdicates the appraiser's responsibility to ensure data credibility. Using only records flagged as verified by the vendor is wrong because the vendor's verification process may be insufficient or unknown; the appraiser retains the ultimate responsibility for data reliability. Exam tip: Remember the core appraisal principle: you are responsible for the data you use. Never blindly trust a secondary source; always perform some level of verification.
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